LinkedIn posts big sales and profit increases as membership grows

Online professional network LinkedIn saw a 59 per cent increase in sales for the second quarter, to $363.7 million (£242 million).

LinkedIn also saw its net profit increase to $3.7 million (£2.4 million) from the $2.8 million (£1.8 million) it made in the second quarter of 2012.

The current membership total of 238 million represented a 37 per cent increase year-over-year.

LinkedIn said persuading luminaries such as Bill Gates and Richard Branson to get involved in its Influencer Programme had contributed to homepage traffic more than doubling compared with last year.

“Accelerated member growth and strong engagement drove record operating and financial results in the second quarter,” said Jeff Weiner, CEO of LinkedIn. “We are continuing to invest in driving scale across the LinkedIn platform in order to fully realise our long-term potential.”

The company's Talent Solutions (recruitment) segment increased its share of group revenue to 56 per cent from the 53 per cent recorded last year, with a revenue total of $205.1 million (£137 million) - up 69 per cent.

Marketing Solutions (ads) brought in $85.6 million (£57 million), an increase of 36 per cent on last year, although the share of company revenue slumped from 28 per cent to 24 per cent in a year.

Premium Subscriptions generated $73 million (£49 million), an increase of 68 per cent.

Revenue from the US totalled $224.3 million (£150 million), representing 62 per cent of total group revenue in the second quarter of 2013.

The company said mobile activity had also increased, with "mobile homepage engagement rising over 40 per cent."

LinkedIn recently published a list of the top 10 most in-demand Silicon Valley startups, featuring a top three of Cloudera, Dropbox and Violin Memory.